America may impose new tariffs on India…investigation of trade policies of many countries begins

Washington: US President Donald Trump’s administration has launched a new investigation into trade policies and practices of 16 major trading partner countries that the US considers ‘unfair’. This move could pave the way for additional tariffs and other penalties on several countries, including India. This decision comes at a time when Trump is looking for new options after the Supreme Court struck down the tariffs imposed earlier by him.

India and other major economies under scrutiny
The investigation into industrial overcapacity primarily targets India, as well as the European Union (EU), China, Japan, and several other major economies. This tough move by the US is likely to further strain relations with these key trading partners.

US Trade Representative’s tough stance:
Citing news agency AFP, US Trade Representative (USTR) Jamieson Greer said that the Trump administration is launching two separate investigations. The first investigation focuses on overproduction, while the second investigation is about the import of goods made with forced labor. He said that new tariffs could be imposed against China, European Union, India, Japan, South Korea and Mexico by this summer. This list also includes Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. America’s second largest trading partner, Canada, has been excluded from this investigation.

Clarifying her stance, Greer said, “We must protect American jobs and we urgently need to ensure that our trade with our trading partners is completely fair.” She directly warned, “If we need to impose tariffs to resolve this issue, we will.” However, Greer did not immediately clarify whether potential future penalties or tariffs would be different for different countries or uniform.

According to Greer, China’s electric vehicle (EV) production capacity far exceeds domestic demand. Nevertheless, BYD, the country’s top EV manufacturer, is aggressively building factories in Uzbekistan, Thailand, Brazil, Hungary, and Turkey, and also plans to expand into Europe.

The large trade surpluses of Germany and Ireland are cited as evidence of excess capacity in the EU. Furthermore, Singapore has global excess semiconductor capacity despite a trade deficit with the US, and Norway’s large exports of fuel and seafood are cited as evidence.

Regarding the second investigation into forced labor, Greer said it could begin any time after noon tomorrow. This investigation will impact approximately 60 trading partner countries, potentially having a significant impact on global supply chains .

The US has already cracked down on solar panels and other goods originating from China’s Xinjiang region under the Uyghur Forced Labor Protection Act, signed by former President Joe Biden. The US alleges that China has established labor camps for Uyghurs and other Muslim minorities (although China denies these allegations). This investigation could now be expanded to other countries.

This latest trade move by the Trump administration , coming just before the Trump-Xi Jinping meeting,
is also strategically significant. This decision comes ahead of a crucial meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing in April. This new investigation could also impact the upcoming talks between the two leaders.